Vanguard closes Wellington Fund to many new accounts

Thu Feb 28, 2013 12:05pm EST

Feb 28 (Reuters) - Vanguard Group said on Thursday it would stop opening new accounts from financial advisers and institutional customers in its popular $68 billion Wellington Fund, which invests in a mix of stocks and bonds.

All current investors can continue to add money to the fund and retail investors will be permitted to open new accounts, Vanguard said.

The same limits, effective immediately, will also apply to the $39 billion Vanguard Intermediate-Term Tax-Exempt Fund , the firm, based in Valley Forge, Pennsylvania, said.

"Our commitment is to protect the interests of the funds' current shareholders, and as we've done in the past, we are demonstrating the conviction to do this by partially closing two of our largest funds," Vanguard Chief Executive Bill McNabb said in a statement.

Separately, Vanguard said it plans to open a new mutual fund and accompanying exchange-traded fund by the end of the second quarter that will track an emerging market bond index, the Barclays USD Emerging Markets Government RIC Capped Index.

Vanguard, with $2.1 trillion of assets under management, is the largest U.S. mutual fund company and the third-largest U.S. ETF manager.

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